Datong’s profits increase

However, the Leeds-based company warned that markets in the rest of the world had slowed.

In the six months ended March 31 2011, operating profit before exceptional items increased to £0.76m, from £0.52m in the same period the year before.

Revenue over the six month period was £6.33m, compared with £7.41m the year before.

The company’s inventory had been built up to ensure it could meet deliveries following the Japanese Tsunami.

Dean Blood, the chief executive, said: “I am pleased with Datong’s performance over the period. Operating profits have increased and Datong has a healthy sales pipeline with good visibility over the potential order intake for the rest of the year underpinning current market expectations.

“We do however recognise that risks in protracted sales cycles, particularly in ROW, remain in the short term.

“However, we are confident that the group’s strategy of diversification of its customer groups, broadening and integration of its technology base and service provision will continue to drive the business forward and underpin future growth.”